Companies Are Supposed to Write-Down Value of Assets If a Permanent

question 41

Multiple Choice

Companies are supposed to write-down value of assets if a permanent impairment of value or loss of utility occurs. If a company writes down its assets this year, the effect on: $\quad$$\quad$$\quad$$\text {This year's ROA}$ $\quad$$\text {Next year's ROA}$
A. $\quad\quad\quad\text { Increased }\quad\quad \quad \text { No change }$
B. $\quad \quad \quad \text { Decreased }\quad \quad \quad \text { No change }$
C. $\quad \quad \quad \text { Decreased }\quad \quad \quad \text { Decreased }$
D. $\quad \quad \quad \text { Decreased }\quad \quad \quad \text { Increased }$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Sweaters

Garments intended for upper body warmth, traditionally made from wool but now also from synthetic fibers.

Shirts

Garments for the upper body, typically with sleeves and a collar, and often used as everyday wear or formal attire.

Optimum

The most favorable condition or level for growth, reproduction, or success, often used in contexts of efficiency or economic well-being.

Income

The monetary payment received for work or through investments, including wages, salaries, or dividends.